Art. 103. The municipal districts shall be governed by municipal councils, consisting of aldermen or councilors directly elected by the people, in the number and in the manner provided by law.

Art. 104. There shall be in each municipal district a mayor elected by the people by direct vote in the manner and form established by law.

Section Second
THE MUNICIPAL COUNCILS AND THEIR POWERS

Art. 105. The municipal councils shall have the following powers:

1. To resolve on all matters exclusively relating to their own municipal districts.

2. To prepare the budget of their expenses, providing at the same time, on condition, however, that this is done in a manner consistent with the general system of taxation of the Republic.

3. To resolve on the negotiation of loans, providing at the same time the permanent revenue necessary to meet the interest and principal when due.

In order that these loans may be carried into effect, they shall have to be approved by two-thirds of the electors of the municipal district.[{234}]

4. To appoint and remove the municipal employes in the manner established by law.

Art. 106. The municipal councils shall not decrease or suppress any revenues of permanent character without establishing at the same time some other revenues which may take their place, except in case the decrease or suppression is due to the decrease or suppression of the equivalent permanent expense.